Matisse, the beach club which tried to add some glamour to Scarborough, has gone into voluntary administration.
The beachfront venues sole director, Sean Reid, called in administrators Rob Kirman and Rob Brauer from restructuring and insolvency firm McGrathNicols local office on Friday.
Mr Reid declined to comment yesterday but it is believed the interruption to the business caused by the Metropolitan Redevelopment Authoritys $100 million development of the Scarborough beachfront was a factor in Matisses demise.
Ten days ago, the club closed its doors for what it said was a winter break brought on by encroaching construction.